Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
China Trade Surplus Hits $125.6 Billion as June Exports, Imports Smash Forecasts 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
The U.S. dollar remained resilient on Friday, positioning itself for a third consecutive weekly gain as stronger-than-expected U.S. economic data reduced market expectations for near-term Federal Reserve rate cuts. The greenback strengthened after a surprise drop in weekly jobless claims, reinforcing confidence in the U.S. labor market and supporting the dollar’s upward momentum.
Overnight, the dollar advanced following data showing U.S. initial unemployment claims fell by 9,000 to 198,000 for the week ended January 10, significantly below economists’ forecasts of 215,000. This improvement, along with upbeat manufacturing indicators, has pushed Fed funds futures to delay expectations for the next interest rate cut until June. Investors now see less urgency for the Federal Reserve to ease monetary policy as inflation concerns remain.
The dollar index, which tracks the U.S. currency against a basket of major peers, hovered around 99.36 and was on track for a weekly gain of roughly 0.2%. The euro traded steadily near $1.1607, while the Japanese yen edged slightly stronger to 158.58 per dollar but was still set for a weekly decline. The yen remains under pressure amid speculation about possible currency market intervention by Japanese authorities and expectations that the Bank of Japan may not raise interest rates again until July.
Comments from Federal Reserve officials further supported the dollar. Chicago Fed President Austan Goolsbee emphasized the need to keep inflation in check, while Kansas City Fed President Jeff Schmid described inflation as still “too hot.” San Francisco Fed President Mary Daly added that recent U.S. economic data has been encouraging, reinforcing the case for patience on rate cuts.
In Europe, the European Central Bank signaled stability, with Chief Economist Philip Lane noting that rates are likely to remain unchanged unless new shocks emerge. The ECB has kept rates steady since ending its easing cycle in June.
Elsewhere, the Australian dollar traded near $0.6699, the New Zealand dollar rose modestly to $0.5745, and cryptocurrencies showed mild gains, with bitcoin near $95,760 and ether around $3,324.
